Currently, the process of selling a property, such as a home, involves listing the property for sale, finding a buyer and entering into a purchase contract. Once there is a purchase contract on the house, then the transaction has to be backed up with documentation such as inspection, title, collateral appraisal, buyer side appraisal, insurances, warranties and other credit verification loan documents.
Also, the current mortgage process is disaggregated, because buyers, sellers, realtors and financial institutions must collectively advance the transaction process. This presents a fundamental inefficiency in closing deals. An average time to close a mortgage is 30 days, but the process can take much longer.
FIG. 1 shows typical process 100 for financing a property, for example, a home. The process proceeds from sub-process 110 to sub-process 120 along timeline A. Sub-process 110 involves the identification of a property that is to be the collateral for a loan. Process 110 involves a buyer, a seller and a realtor. Sub-process 120 involves approving a loan based on the property identified in process 110. Sub-process 120 typically includes obtaining external documentation and approving customer credit 122. (The customer is typically the buyer.) Then, the bank undertakes origination and underwriting 124. In support of origination and underwriting 124, the bank may obtain, at step 126, flood, hazard and mortgage insurance and an appraisal. These services may be provided by the bank or a vendor. Sub-process 120 is completed at closing step 126, which involves buyer and seller.
FIG. 2 shows typical financing process 200, which is performed by a financial institution in connection with the granting of a loan. Process 200 includes high-level steps 0.0 for sales, 1.0 for initial credit decision, 2.0 for application process, 3.0 for closing the loan, 4.0 for post closing actions and 5.0 for servicing. Sales step 0.0 often includes prequalifying a borrower 0.1 and taking an application from the borrower 0.2.
Initial credit decision step 1.0 often includes automated credit decision 1.1, manual credit decision 1.2, transmission of RESPA (“Real Estate Settlement Procedures Act”)/approval letter 1.3 and HMDA (“Home Mortgage Disclosure Act” Review 1.4.
Process application step 2.0 often includes BR conversion 2.1, process application fees 2.2, file assignment 2.3, order appraisal 2.4, order title/tax 2.5, order flood insurance 2.6, order initial payoff 2.7, welcome call 2.8, receive, review vendor documents 2.9, receive, review loan conditions 2.10, interim calls 2.11, HMDA review 2.12, final call 2.13, final approval 2.14 and pricing 2.15.
Close loan step 3.0 often includes file assignment 3.1, loan audit 3.2, updated payoff 3.3, closing call 3.4, obtain estimated HUD-1 (“U.S. Department of Housing and Urban Development Form HUD-1”) approval 3.5, generate loan documents 3.6, fund loan 3.7 and national post closing requirements 3.8.
Servicing step 5.0 often includes collection of monthly payment 5.1 and adjustment of empty nester loan interest only payment 5.2.
Process application step 2.0 may be lengthy and may delay the time between sales 0.0 and close loan 3.0.
It would be desirable, therefore, to provide apparatus and methods for providing financing for the sale of a property by a seller that reduce loan closing delays.